Europe is trying to protect its economy from global problems, Total Energies increasing fuel production in France, while more cheap chinese electric cars are entering the market and creating concern.
As a result, many oil tankers are avoiding the usual shortcut via the Suez Canal and are instead travelling around the Cape of Good Hope. This longer journey takes more time and increases costs, which can eventually push up fuel prices.
To deal with this, Total Energies is trying to produce more fuel locally so France does not have to depend as much on delayed imports. The focus is mainly on diesel and jet fuel, which are essential for transport and flights.
This is not just about fuel. It reflects a bigger shift happening across Europe.
In recent years, Europe has faced several disruptions from the pandemic to geopolitical tensions that exposed how dependent it is on other countries for critical supplies. Now, governments are trying to reduce that dependence and become more self-reliant.
China adds to Europe’s worries
At the same time, Europe is also dealing with a growing trade imbalance with China.
A big reason is the rapid rise in Chinese electric vehicle (EV) exports to Europe. These cars are often cheaper, making them popular with buyers but difficult for European manufacturers to compete with.
As a result, China is exporting far more goods to Europe than it imports from the region, creating a large trade gap. European policymakers worry this could hurt local industries over time.
To address this, the European Union has imposed tariffs on some Chinese EVs and is looking at ways to support its own manufacturers. However, Chinese imports continue to grow, showing how dependent Europe still is on external suppliers.
Put together, these developments show Europe is trying to strike a balance.
overall europe is trying to do two things produce, more goods at home to stay safe from global issues, and at the same time manage trade with china without cutting it completely.
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